State Laws About Marijuana

Transcription

1 Senate Calendar TUESDAY, FEBRUARY 16, 2016 SENATE CONVENES AT: 9:30 A.M. TABLE OF CONTENTS ACTION CALENDAR NEW BUSINESS Third Reading Page No. H. 505 An act relating to approval of amendments to the charter of the Village of North Bennington J.R.S. 35 Joint resolution urging Vermont s participation in the Stepping Up initiative to reduce the number of incarcerated Vermonters with a mental illness NOTICE CALENDAR Second Reading Favorable H. 524 An act relating to seeking a waiver to permit businesses to continue to purchase Exchange plans directly from insurers Finance Report - Sen. Sirotkin Favorable with Recommendation of Amendment S. 241 An act relating to personal possession and cultivation of cannabis and the regulation of commercial cannabis establishments Judiciary Report - Sen. Sears Finance Report - Sen. Ashe

2 ORDERS OF THE DAY ACTION CALENDAR NEW BUSINESS Third Reading H An act relating to approval of amendments to the charter of the Village of North Bennington. J.R.S. 35. Joint resolution urging Vermont s participation in the Stepping Up initiative to reduce the number of incarcerated Vermonters with a mental illness. NOTICE CALENDAR Second Reading Favorable H An act relating to seeking a waiver to permit businesses to continue to purchase Exchange plans directly from insurers. Reported favorably by Senator Sirotkin for the Committee on Finance. (Committee vote: 5-0-2) (For House amendments, see House Journal of January 21, 2016, page 56) Favorable with Recommendation of Amendment S An act relating to personal possession and cultivation of cannabis and the regulation of commercial cannabis establishments. Reported favorably with recommendation of amendment by Senator Sears for the Committee on Judiciary. The Committee recommends that the bill be amended by striking out all after the enacting clause and inserting in lieu thereof the following: * * * Findings * * * Sec. 1. LEGISLATIVE FINDINGS AND INTENT The General Assembly finds the following:

3 (1) According to a 2014 study commissioned by the administration and conducted by the RAND Corporation, marijuana is commonly used in Vermont with an estimated 80,000 residents having used marijuana in the last month. (2) For over 75 years, Vermont has debated the issue of marijuana regulation and amended its marijuana laws numerous times in an effort to protect public health and safety. Criminal penalties for possession rose in the 1940s and 50s to include harsh mandatory minimums, dropped in the 1960s and 70s, rose again in the 1980s and 90s, and dropped again in the 2000s. A study published in the American Journal of Public Health found that no evidence supports the claim that criminalization reduces marijuana use. (3) Vermont seeks to take a new comprehensive approach to marijuana use and abuse that incorporates prevention, education, regulation, treatment, and law enforcement which results in a net reduction in public harm and an overall improvement in public safety. Responsible use of marijuana by adults 21 years of age or older should be treated the same as responsible use of alcohol, the abuse of either treated as a public health matter, and irresponsible use of either that causes harm to others sanctioned with penalties. (4) Policymakers recognize legitimate federal concerns about marijuana reform and seek through this legislation to provide better control of access and distribution of marijuana in a manner that prevents: (A) distribution of marijuana to persons under 21 years of age; (B) revenue from the sale of marijuana going to criminal enterprises; (C) diversion of marijuana to states that do not permit possession of marijuana; (D) State-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or activity; (E) violence and the use of firearms in the cultivation and distribution of marijuana; (F) drugged driving and the exacerbation of any other adverse public health consequences of marijuana use; (G) growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and (H) possession or use of marijuana on federal property

4 (5) In his 2016 State of the State address, the Governor identified five essential elements to a well-regulated framework for marijuana legalization, which the General Assembly believes have been addressed in this Act: (A) Keeping marijuana and other drugs out of the hands of youth. (B) Creating a regulated marijuana market that shifts demand away from the illegal market and the inherent public health and safety risks associated with the illegal market. (C) Using revenue from commercial marijuana sales to expand drug prevention and treatment programs. (D) Strengthening law enforcement s capacity to improve the response to impaired drivers under the influence of marijuana or other drugs. (E) Prohibiting the commercial production and sale of marijuana concentrates and edible marijuana products until other states that are currently permitting such products successfully develop consumer protections that are shown to prevent access by youth and potential misuse by adults. (6) Revenue generated by this act shall be allotted in the following formula: (A) 25 percent to prevention of substance abuse; (B) 25 percent to treatment of substance abuse; (C) 25 percent to criminal justice efforts to combat the illegal drug trade and impaired driving; and (D) 25 percent to the General Fund for the implementation, administration, and enforcement of this act with any remaining funds allocated equally among subdivisions (A) (C) of this subdivision (6). * * * Prevention * * * Sec. 2. MARIJUANA YOUTH EDUCATION AND PREVENTION (a) The Department of Health shall develop and administer an education and prevention program to address evidence that early and persistent use of marijuana may be detrimental to the health and well-being of youth. (b) To the extent funding permits, the Department shall establish a Substance Abuse Youth Prevention and Education Program. The Program shall be evidence-based and shall include: (1) Community- and school-based youth and family focused prevention initiatives that strive to:

5 (A) expand the number of school-based grants for substance abuse services to enable each Supervisory Union to develop a plan for comprehensive substance abuse prevention education in a flexible manner that ensures the needs of individual communities are addressed; (B) improve the Screening, Brief Intervention and Referral to Treatment (SBIRT) practice model for professionals serving youth in schools and other settings; and (C) expand family education programs. (2) An information and counter-marketing campaign using a public website, printed materials, mass and social media, and advertisements for the purpose of preventing underage marijuana use. (3) Education for parents and health care providers to encourage screening for substance use disorders and other related risks. (4) Expansion of the use of SBIRT among the State s pediatric practices and school-based health centers. (c) On or before March 15, 2017, the Department shall adopt rules to implement this section. Secs RESERVED * * * Legal Possession; Civil and Criminal Penalties * * * Sec. 6. LEGISLATIVE INTENT; CIVIL AND CRIMINAL PENALTIES It is the intent of the General Assembly to eliminate all civil penalties for possession of one ounce or less of marijuana for a person who is 21 years of age or older while retaining the current criminal penalties for possession of larger amounts of marijuana and criminal penalties for unauthorized dispensing or sale of marijuana. This act also retains the current civil and criminal penalties for possession of marijuana by a person under 21 years of age, which are the same as possession of alcohol by a person under 21 years of age. Sec V.S.A. 4201(15) is amended to read: (15)(A) Marijuana means any plant material of the genus licenses or any preparation, compound, or mixture thereof except: (A) sterilized seeds of the plant; (B) fiber produced from the stalks; or (C) hemp or hemp products, as defined in 6 V.S.A. 562 all parts of the plant Cannabis sativa L., except as provided by subdivision (B) of this subdivision (15), whether growing or harvested, and includes:

6 (i) the seeds of the plant; (ii) the resin extracted from any part of the plant; and (iii) any compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. stalks; (B) Marijuana does not include: (i) the mature stalks of the plant and fiber produced from the (ii) oil or cake made from the seeds of the plant; (iii) any compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks, fiber, oil, or cake; or (iv) germination. the sterilized seed of the plant that is incapable of Sec V.S.A. 4230(b) is amended to read: (b) Selling or dispensing. (1) A person knowingly and unlawfully selling marijuana or hashish shall be imprisoned not more than two years or fined not more than $10,000.00, or both. (2) A person knowingly and unlawfully selling or dispensing one-half ounce or more than one ounce of marijuana or 2.5 five grams or more of hashish shall be imprisoned not more than five years or fined not more than $100,000.00, or both. (3) A person knowingly and unlawfully selling or dispensing one pound or more of marijuana or 2.8 ounces of hashish shall be imprisoned not more than 15 years or fined not more than $500,000.00, or both. Sec V.S.A. 4230a is amended to read: 4230a. MARIJUANA POSSESSION BY A PERSON 21 YEARS OF AGE OR OLDER; CIVIL VIOLATION (a)(1) A person 21 years of age or older who knowingly and unlawfully possesses one ounce or less of marijuana or five grams or less of hashish commits a civil violation and shall be assessed a civil penalty as follows: (1) not more than $ for a first offense; (2) not more than $ for a second offense; (3) not more than $ for a third or subsequent offense

7 (b)(1) Except as otherwise provided in this section, a person 21 years of age or older who possesses one ounce or less of marijuana or five grams or less of hashish or who possesses paraphernalia for marijuana use shall not be penalized or sanctioned in any manner by the State or any of its political subdivisions or denied any right or privilege under State law. (2)(A) A violation of this section shall not result in the creation of a criminal history record of any kind A person shall not consume marijuana in a public place. Public place means any street, alley, park, sidewalk, public building other than individual dwellings, any place of public accommodation as defined in 9 V.S.A. 4501, and any place where the possession of a lighted tobacco product is prohibited pursuant to section 1421 of this title or chapter 37 of this title. (B) A person who violates this subdivision (a)(2) shall be assessed a civil penalty as follows: (i) not more than $ for a first offense; (ii) not more than $ for a second offense; and (iii) not more than $ for a third or subsequent offense. (c)(1)(b) This section does not exempt any person from arrest or prosecution for being under the influence of marijuana while operating a vehicle of any kind and shall not be construed to repeal or modify existing laws or policies concerning the operation of vehicles of any kind while under the influence of marijuana.: (1) permit a person to cultivate marijuana without a license from the Department of Public Safety; (2) exempt a person from arrest, citation, or prosecution for being under the influence of marijuana while operating a vehicle of any kind or for consuming marijuana while operating a motor vehicle; (3) repeal or modify existing laws or policies concerning the operation of vehicles of any kind while under the influence of marijuana or for consuming marijuana while operating a motor vehicle; (4) limit the authority of primary and secondary schools to impose administrative penalties for the possession of marijuana on school property; (5) prohibit a municipality from adopting a civil ordinance to provide additional penalties for consumption of marijuana in a public place; (6) require an employer to accommodate the possession or use of marijuana or being under the influence of marijuana in a place of employment;

8 (7) prohibit a landlord from banning possession or use of marijuana in a lease agreement; or (8) allow an inmate of a correctional facility to possess or use marijuana or to limit the authority of law enforcement, the courts, the Department of Corrections, or the Parole Board to impose penalties on offenders who use marijuana in violation of a court order, conditions of furlough, parole, or rules of a correctional facility. (2) This section is not intended to affect the search and seizure laws afforded to duly authorized law enforcement officers under the laws of this State. Marijuana is contraband pursuant to section 4242 of this title and subject to seizure and forfeiture unless possessed in compliance with chapter 86 of this title (therapeutic use of cannabis). (3) This section shall not be construed to prohibit a municipality from regulating, prohibiting, or providing additional penalties for the use of marijuana in public places. (d) If a person suspected of violating this section contests the presence of cannabinoids within 10 days of receiving a civil citation, the person may request that the State Crime Laboratory test the substance at the person s expense. If the substance tests negative for the presence of cannabinoids, the State shall reimburse the person at state expense. (e)(c)(1) A law enforcement officer is authorized to detain a person if: (A) the officer has reasonable grounds to believe the person has violated subsection (b) of this section; and (B) the person refuses to identify himself or herself satisfactorily to the officer when requested by the officer. (2) The person may be detained only until the person identifies himself or herself satisfactorily to the officer or is properly identified. If the officer is unable to obtain the identification information, the person shall forthwith be brought before a judge in the Criminal Division of the Superior Court for that purpose. A person who refuses to identify himself or herself to the Court on request shall immediately and without service of an order on the person be subject to civil contempt proceedings pursuant to 12 V.S.A (f)(d) Fifty percent of the civil penalties imposed by the Judicial Bureau for violations of this section shall be deposited in the Drug Task Force Special Fund, hereby created to be managed pursuant to 32 V.S.A. chapter 7, subchapter 5, and available to the Department of Public Safety for the funding of law enforcement officers on the Drug Task Force, except for a $12.50 administrative charge for each violation which shall be deposited in the Court

9 Technology Special Fund, in accordance with 13 V.S.A The remaining 50 percent shall be deposited in the Youth Substance Abuse Safety Program Special Fund, hereby created to be managed pursuant to 32 V.S.A. chapter 7, subchapter 5, and available to the Court Diversion Program for funding of the Youth Substance Abuse Safety Program as required by section 4230b of this title. Sec V.S.A. 4230e is added to read: 4230e. SALE OR FURNISHING MARIJUANA TO A PERSON UNDER 21 YEARS OF AGE (a) No person shall: (1) sell or furnish marijuana to a person under 21 years of age; or (2) knowingly enable the consumption of marijuana by a person under 21 years of age. (b) As used in this section, enable the consumption of marijuana means creating a direct and immediate opportunity for a person to consume marijuana. (c)(1) Except as provided in subdivision (2) of this subsection (c) and subsection (d) of this section, a person who violates subsection (a) of this section shall be imprisoned not more than two years or fined not more than $2,000.00, or both. (2) A person who violates subdivision (a)(1) of this section by selling or furnishing marijuana to a person under 18 years of age shall be imprisoned not more than four years or fined not more than $4,000.00, or both. (d) An employee of a marijuana establishment licensed pursuant to chapter 87 of this title, who, in the course of employment, violates subdivision (a)(1) of this section during a compliance check conducted by a law enforcement officer shall be: (1) assessed a civil penalty of not more than $ for the first violation and a civil penalty of not less than $ nor more than $ for a second violation that occurs more than one year after the first violation; and (2) subject to the criminal penalties provided in subsection (c) of this section for a second violation within a year of the first violation, and for a third or subsequent violation within three years of the first violation. (e) An employee alleged to have committed a violation of subsection (d) of this section may plead as an affirmative defense that:

10 (1) the purchaser exhibited and the employee carefully viewed photographic identification that indicated the purchaser to be 21 years of age or older; (2) an ordinary prudent person would believe the purchaser to be of legal age to make the purchase; and (3) the sale was made in good faith, based upon the reasonable belief that the purchaser was of legal age to purchase marijuana. (f) A person who violates subsection (a) of this section, where the person under 21 years of age, while operating a motor vehicle on a public highway, causes death or serious bodily injury to himself or herself or to another person as a result of the violation, shall be imprisoned not more than five years or fined not more than $10,000.00, or both. (g) This section shall not apply to: (1) A person under 21 years of age who sells or furnishes marijuana to a person under 21 years of age or who knowingly enables the consumption of marijuana by a person under 21 years of age. Possession of an ounce or less of marijuana by a person under 21 years of age shall be punished in accordance with sections 4230b 4230d of this title and dispensing or selling marijuana shall be punished in accordance with sections 4230 and 4237 of this title. (2) A dispensary registered pursuant to chapter 86 of this title. Sec V.S.A. 4230f is added to read: 4230f. CHEMICAL EXTRACTION PROHIBITED (a) No person shall manufacture concentrated marijuana by chemical extraction or chemical synthesis using a solvent such as butane, hexane, isopropyl alcohol, ethanol, or carbon dioxide unless authorized as a dispensary pursuant to a registration issued by the Department of Public Safety pursuant to chapter 86 of this title. This section does not preclude extraction by vegetable glycerin. (b) A person who violates subsection (a) of this section shall be imprisoned not more than two years or fined not more than $2,000.00, or both. A person who violates subsection (a) of this section and causes serious bodily injury to another person shall be imprisoned not more than five years or fined not more than $5,000.00, or both. * * * Commercial Marijuana Regulation * * * Sec V.S.A. chapter 87 is added to read: CHAPTER 87. MARIJUANA ESTABLISHMENTS

11 4501. DEFINITIONS As used in this chapter: (1) Applicant means: Subchapter 1. General Provisions (A) an individual who has a ten percent or greater ownership interest in a business entity that seeks to operate a marijuana establishment pursuant to this chapter; (B) a director, officer, or manager of business entity that seeks to operate a marijuana establishment pursuant to this chapter; (C) if the business entity that seeks to operate a marijuana establishment pursuant to this chapter is a subsidiary of a parent entity, an individual who has a ten percent or greater ownership interest in the parent entity; or (D) a principal officer or board member of a dispensary. (2) Child care facility means a child care facility or family day care home licensed or registered under 33 V.S.A. chapter 35. (3) Commissioner means the Commissioner of Public Safety. (4) Department means the Department of Public Safety. (5) Dispensary means a person registered under section 4474e of this title that acquires, possesses, cultivates, manufactures, transfers, transports, supplies, sells, or dispenses marijuana, marijuana-infused products, and marijuana-related supplies and educational materials for or to a registered patient who has designated it as his or her center and to his or her registered caregiver for the registered patient s use for symptom relief. (6) Enclosed, locked facility shall be either indoors or outdoors, not visible to the public, and may include a building, room, greenhouse, fully enclosed fenced-in area, or other location enclosed on all sides and equipped with locks or other security devices that permit access only by: (A) Employees, agents, or owners of the cultivator, all of whom shall be 21 years of age or older. (B) Government employees performing their official duties. (C) Contractors performing labor that does not include marijuana cultivation, packaging, or processing. Contractors shall be accompanied by an employee, agent, or owner of the cultivator when they are in areas where marijuana is being grown, processed, or stored

12 (D) Registered employees of other cultivators, members of the media, elected officials, and other individuals 21 years of age or older visiting the facility, provided they are accompanied by an employee, agent, or owner of the cultivator. (7) Financier means any person other than a banking institution that has made or will make an investment in the licensed business. A financier can be a person that provides money as a gift, loans money to the applicant and expects to be paid back the amount of the loan with or without interest, or expects any percentage of the profits from the business in exchange for a loan or expertise. (8) Handbill means a flyer, leaflet or sheet that advertises marijuana or a marijuana establishment. (9) Marijuana shall have the same meaning as provided in section 4201 of this title. (10) Marijuana cultivator or cultivator means a person registered with the Department to engage in commercial cultivation of marijuana in accordance with this chapter. (11) Marijuana establishment means a marijuana cultivator, retailer, or testing laboratory licensed by the Department to engage in commercial marijuana activity in accordance with this chapter. (12) Marijuana retailer or retailer means a person licensed by the Department to sell marijuana to consumers for off-site consumption in accordance with this chapter. (13) Marijuana testing laboratory or testing laboratory means a person licensed by the Department to test marijuana for cultivators and retailers in accordance with this chapter. (14) Person shall include any natural person; corporation; municipality; the State of Vermont or any department, agency or subdivision of the State; and any partnership, unincorporated association or other legal entity. (15) Plant canopy means the square footage dedicated to live plant production and does not include areas such as office space or areas used for the storage of fertilizers, pesticides, or other products. (16) Public place means any street, alley, park, sidewalk, public building other than individual dwellings, any place of public accommodation as defined in 9 V.S.A. 4501, and any place where the possession of a lighted tobacco product is prohibited pursuant to section 1421 of this title or chapter 37 of this title

13 (17) Resident means a person who is domiciled in Vermont. For purposes of licensing under this chapter, the process for determining domicile shall be the same as that required by rules adopted by the Department of Taxes related to determining domicile for the purpose of the interpretation and administration of 32 V.S.A. 5401(14). (18) School means a public school, independent school, or facility that provides early childhood education as those terms are defined in 16 V.S.A MARIJUANA POSSESSED UNLAWFULLY SUBJECT TO SEIZURE AND FORFEITURE Marijuana possessed unlawfully in violation of this chapter may be seized by law enforcement and is subject to forfeiture NOT APPLICABLE TO HEMP OR THERAPEUTIC USE OF CANNABIS This chapter shall not apply to activities regulated by 7 V.S.A. chapter 34 (hemp) or chapter 86 (therapeutic use of cannabis) of this title CONSUMPTION OF MARIJUANA IN A PUBLIC PLACE PROHIBITED This chapter shall not be construed to permit consumption of marijuana in a public place. Violations shall be punished in accordance with section 4230 of this title REGULATION BY LOCAL GOVERNMENT (a)(1) A marijuana establishment shall obtain a permit from a town, city, or incorporated village prior to beginning operations within the municipality. (2) A municipality that hosts a marijuana establishment may establish a board of marijuana control commissioners, who shall be the members of the municipal legislative body. The board shall administer the municipal permits for the marijuana establishments within the municipality. (b) Nothing in this chapter shall be construed to prevent a town, city, or incorporated village from regulating marijuana establishments through local ordinances as set forth in 24 V.S.A or through land use bylaws as set forth in 24 V.S.A (c)(1) A town, city, or incorporated village, by majority vote of those present and voting at annual or special meeting warned for the purpose, may prohibit the operation of a marijuana establishment within the municipality. The provisions of this subdivision shall not apply to a marijuana establishment that is operating within the municipality at the time of the vote

14 (2) A vote to prohibit the operation of a marijuana establishment within the municipality shall remain in effect until rescinded by majority vote of those present and voting at an annual or special meeting warned for the purpose YOUTH RESTRICTIONS (a) A marijuana establishment shall not dispense or sell marijuana to a person under 21 years of age or employ a person under 21 years of age. (b) A marijuana establishment shall not be located within 1,000 feet of a preexisting public or private school or licensed or regulated child care facility. (c) A marijuana establishment shall not permit a person under 21 years of age to enter a building or enclosure on the premises where marijuana is located. This subsection shall not apply to a registered patient visiting his or her designated dispensary even if that dispensary is located in a building that is located on the same premises of a marijuana establishment ADVERTISING (a) Marijuana advertising shall not contain any statement or illustration that: (1) is false or misleading; (2) promotes overconsumption; (3) represents that the use of marijuana has curative or therapeutic effects; (4) depicts a person under 21 years of age consuming marijuana; or (5) is designed to be appealing to children or persons under 21 years of age (b) Outdoor marijuana advertising shall not be located within 1,000 feet of a preexisting public or private school or licensed or regulated child care facility. (c) Handbills shall not be posted or distributed. (d) In accordance with section 4512 of this chapter, the Department shall adopt regulations on marijuana establishment advertising that reflect the policies of subsection (a) of this section and place restrictions on the time, place, and manner, but not content, of the advertising. (e) All advertising shall contain the following warnings: (1) For use only by adults 21 years of age or older. Keep out of the reach of children

15 (2) Marijuana has intoxicating effects and may impair concentration, coordination, and judgment. Do not operate a motor vehicle or heavy machinery or enter into any contractual agreement under the influence of marijuana AUTHORITY Subchapter 2. Department of Public Safety For the purpose of regulating the cultivation, processing, packaging, transportation, testing, purchase, and sale of marijuana in accordance with this chapter, the Department shall have the following authority and duties: (1) rulemaking in accordance with this chapter and 3 V.S.A. chapter 25; (2) administration of a program for the licensure of marijuana establishments, which shall include compliance and enforcement; and (3) submission of an annual budget to the Governor RULEMAKING The Department shall adopt rules to implement this chapter on or before March 15, 2017, in accordance with subdivisions (1) (3) of this section. (1) Rules concerning any marijuana establishment shall include: (A) the form and content of license and renewal applications; (B) qualifications for licensure that are directly and demonstrably related to the operation of a marijuana establishment, including submission of an operating plan and the requirement for a fingerprint-based criminal history record check and regulatory record check for all principals and financiers of the proposed marijuana establishment; records; (C) oversight requirements; (D) inspection requirements; (E) records to be kept by licensees and the required availability of the (F) employment and training requirements, including requiring that each marijuana establishment create an identification badge for each employee; (G) security requirements, including lighting, physical security, video, and alarm requirements; (H) restrictions on advertising, marketing, and signage; (I) health and safety requirements;

16 (J) regulation of additives to marijuana, including those that are toxic or designed to make the product more addictive, more appealing to children, or to mislead consumers; (K) procedures and standards for testing marijuana for contaminants and potency; (L) regulation of the storage and transportation of marijuana; (M) sanitary requirements; (N) pricing guidelines with a goal of ensuring marijuana is sufficiently affordable to undercut the illegal market; (O) procedures for the renewal of a license, which shall allow renewal applications to be submitted up to 90 days prior to the expiration of the marijuana establishment s license; and health; (P) procedures for suspension and revocation of a license. (2) Rules concerning cultivators shall include: (A) seed to sale tracking of marijuana plants; (B) restrictions on the use of pesticides that are injurious to human (C) standards for both the indoor and outdoor cultivation of marijuana, including environmental protection requirements; (D) labeling requirements for products sold to retailers; and (E) regulation of visits to the establishments, including the number of visitors allowed at any one time and recordkeeping concerning visitors. (3) Rules concerning retailers shall include: (A) labeling requirements for products sold to customers; (B) requirements for proper verification of age and residency of customers; (C) restrictions that marijuana shall be stored behind a counter or other barrier to ensure a customer does not have direct access to the marijuana; and (D) regulation of visits to the establishments, including the number of customers allowed at any one time and recordkeeping concerning visitors. (4) Rules concerning testing laboratories shall include: (A) procedures for destruction of all samples;

17 (B) quality assurance and control; (C) requirements of testing operating manual; and (D) requirements for chain of custody recordkeeping IMPLEMENTATION (a)(1) On or before March 15, 2017, the Department shall begin accepting applications for cultivator licenses and testing laboratory licenses. The initial application period shall remain open for 30 days. The Department may reopen the application process for any period of time at its discretion. On or before July 1, 2018, any restrictions on the timing of applications shall end and the Department shall begin an ongoing, open application process. (2) On or before July 15, 2017, the Department shall begin issuing cultivator licenses and testing laboratory licenses to qualified applicants. (b)(1) On or before July 15, 2017, the Department shall begin accepting applications for retail licenses. The initial application period shall remain open for 30 days. The Department may reopen the application process for any period of time at its discretion. On or before July 1, 2018, any restrictions on the timing of applications shall end and the Department shall begin an ongoing, open application process. (2) On or before October 15, 2017, the Department shall begin issuing retailer licenses to qualified applicants. A license shall not permit a licensee to open the store to the public or sell marijuana to the public prior to January 1, (c)(1) Prior to July 1, 2018, provided applicants meet the requirements of this chapter, the Department shall issue: (A) up to 15 cultivator licenses that permit a cultivation space of not more than 5,000 square feet; (B) up to 10 cultivator licenses that permit a cultivation space of 5,001 10,000 square feet; (C) up to five cultivator licenses that permit a cultivation space of 10,001 20,000 square feet. (2) On or after July 1, 2018, the limitations in subdivision (1) of this subsection shall not apply and the Department shall use its discretion to issue cultivator licenses in a number and size that provides sufficient amounts of marijuana to licensed retailers. A cultivator licensed under the limitations of subdivision (1) of this subsection may apply to the Department to modify its license to expand its cultivation space

18 4514. CIVIL CITATIONS; SUSPENSION AND REVOCATION OF LICENSES (a) The Department shall have the authority to adopt rules for the issuance of civil citations for violations of this chapter and the rules adopted pursuant to section 4512 of this title. Any proposed rule under this section shall include the full, minimum, and waiver penalty amounts for each violation. (b) The Department shall have the authority to suspend or revoke a license for violations of this chapter in accordance with rules adopted pursuant to section 4512 of this title GENERAL PROVISIONS Subchapter 3. Licenses (a) Except as otherwise permitted by this chapter, a person shall not engage in the cultivation, preparation, processing, packaging, transportation, testing, or sale of marijuana without obtaining a license from the Department. (b) All licenses shall expire at midnight, April 30, of each year beginning no earlier than 10 months after the original license was issued to the marijuana establishment. (c) Applications for licenses and renewals shall be submitted on forms provided by the Department and shall be accompanied by the fees provided for in section 4526 of this section. (d)(1) Except as provided in subdivision (2) of this subsection (d), a person may obtain only one license, either a cultivator license, a retailer license, or a testing laboratory license under this chapter. (2) A dispensary or a subsidiary of a dispensary may obtain one of each type of license under this chapter, provided that a dispensary or its subsidiary obtain no more than one cultivator license, one retailer license, and one testing laboratory license total. (e) Each license shall permit only one location of the establishment. (f) A dispensary that obtains a retailer license pursuant to this chapter shall maintain the dispensary and retail operations in a manner that protects patient and caregiver privacy in accordance with rules adopted by the Department. If the dispensary and retail establishment are located on the same premises, the dispensary and retail establishment shall provide separate entrances and common areas designed to serve patients and caregivers and customers. (g) Each licensee shall obtain and maintain commercial general liability insurance in accordance with rules adopted by the Department. Failure to

19 provide proof of insurance to the Department, as required, may result in revocation of the license. (h) This subchapter shall not apply to possession regulated by section 4230a of this title LICENSE QUALIFICATIONS AND APPLICATION PROCESS (a) To be eligible for a marijuana establishment license, an applicant shall: (1) be 21 years of age or older; (2) be a resident of this State for at least two years immediately prior to applying for a license; and (3) consent to the release of his or her criminal and administrative history records. (b) A financier of a marijuana establishment shall be a resident of this State for at least two years immediately prior to filing of the application for a license for which the person is serving as a financier. (c) As part of the application process, each applicant shall submit, in a format proscribed by the Department, an operating plan. The plan shall include a floor plan or site plan drawn to scale that illustrates the entire operation being proposed. The plan shall also include the following: (1) For a cultivator license, information concerning: (A) security; (B) traceability; (C) employee qualifications and training; (D) transportation of product; (E) destruction of waste product; (F) description of growing operation, including growing media, size of grow space allocated for plant production, space allowed for any other business activity, description of all equipment to be used in the cultivation process, and a list of soil amendments, fertilizers, or other crop production aids, or pesticides, utilized in the production process; (G) testing procedures and protocols; (H) description of packaging and labeling of products transported to retailers; and (I) any additional requirements contained in rules adopted by the Department in accordance with this chapter

20 (2) For a retailer license, information concerning: (E) customers; (A) security; (B) traceability; (C) employee qualifications and training; (D) destruction of waste product; description of packaging and labeling of products sold to (F) the products to be sold and how they will be displayed to customers; and (G) any additional requirements contained in rules adopted by the Department in accordance with this chapter. (3) For a testing laboratory license, information concerning: (A) security; (B) traceability; (C) employee qualifications and training; (D) destruction of waste product; and (E) the types of testing to be offered. (d) For each applicant and financier, the Department shall obtain a Vermont criminal history record, an out-of-state criminal history record, a criminal history record from the Federal Bureau of Investigation, and any regulatory records relating to the person s operation of a business in this State or any other jurisdiction. (e) When considering applications for a marijuana establishment license, the Department shall: (1) give priority to a qualified applicant that is a dispensary or subsidiary of a dispensary; (2) strive for geographic distribution of marijuana establishments based on population EDUCATION (a) An applicant for a marijuana establishment license shall meet with a Department designee for the purpose of reviewing Vermont laws and rules pertaining to the possession, purchase, storage, and sale of marijuana prior to receiving a license

21 (b) A licensee shall complete an enforcement seminar every three years conducted by the Department. A license shall not be renewed unless the records of the Department show that the licensee has complied with the terms of this subsection. (c) A licensee shall ensure that each employee involved in the sale of marijuana completes a training program approved by the Department prior to selling marijuana and at least once every 24 months thereafter. A licensee shall keep a written record of the type and date of training for each employee, which shall be signed by each employee. A licensee may comply with this requirement by conducting its own training program on its premises, using information and materials furnished by the Department. A licensee who fails to comply with the requirements of this section shall be subject to a suspension of no less than one day of the license issued under this chapter IDENTIFICATION CARD; CRIMINAL BACKGROUND CHECK (a) The Department shall issue each employee an identification card or renewal card within 30 days of receipt of the person s name, address, and date of birth and a fee of $ The fee shall be paid by the marijuana establishment and shall not be passed on to an employee. A person shall not work as an employee in until that person has received an identification card issued under this section. Each card shall contain the following: (1) the name, address, and date of birth of the person; (2) the legal name of the marijuana establishment with which the person is affiliated; (3) a random identification number that is unique to the person; (4) the date of issuance and the expiration date of the identification card; and (5) a photograph of the person. (b) Prior to acting on an application for an identification card, the Department shall obtain the person s Vermont criminal history record, out-of-state criminal history record, and criminal history record from the Federal Bureau of Investigation. Each person shall consent to the release of criminal history records to the Department on forms developed by the Vermont Crime Information Center. (c) When the Department obtains a criminal history record, the Department shall promptly provide a copy of the record to the person and the marijuana establishment. The Department shall inform the person of the right to appeal the accuracy and completeness of the record pursuant to rules adopted by the Department

22 (d) The Department shall comply with all laws regulating the release of criminal history records and the protection of individual privacy. No person shall confirm the existence or nonexistence of criminal history record information to any person who would not be eligible to receive the information pursuant to this chapter. (e) The Department shall not issue an identification card to any person who has been convicted of a drug-related offense or a violent felony or who has a pending charge for such an offense. As used in this subchapter, violent felony means a listed crime as defined in 13 V.S.A. 5301(7) or an offense involving sexual exploitation of children in violation of 13 V.S.A. chapter 64. (f) The Department shall adopt rules for the issuance of an identification card and shall set forth standards for determining whether a person should be denied a registry identification card because his or her criminal history record indicates that the person s association with a marijuana establishment would pose a demonstrable threat to public safety. The rules shall consider whether a person who has a conviction for an offense not listed in subsection (e) of this section has been rehabilitated. A conviction for an offense not listed in subsection (e) of this section shall not automatically disqualify a person for a registry identification card. A marijuana establishment may deny a person the opportunity to serve as an employee based on his or her criminal history record. A person who is denied an identification card may appeal the Department s determination in Superior Court in accordance with Rule 75 of the Vermont Rules of Civil Procedure. (g) An identification card shall expire one year after its issuance or upon the expiration of the marijuana establishment s license, whichever occurs first CULTIVATOR LICENSE (a) A cultivator licensed under this chapter may cultivate, package, label, transport, test, and sell marijuana to a licensed retailer. (b) Cultivation of marijuana shall occur only in an enclosed, locked facility. (c) An applicant shall designate on their operating plan the size of the premises and the amount of actual square footage that will be dedicated to plant canopy. (d) Representative samples of each lot or batch of marijuana intended for human consumption shall be tested for safety and potency in accordance with rules adopted by the Department. (e) Each cultivator shall create packaging for its marijuana. (1) Packaging shall include:

23 (A) The name and registration number of the cultivator. (B) The strain of marijuana contained. Marijuana strains shall be either pure breeds or hybrid varieties of marijuana and shall reflect properties of the plant. (C) The potency of the marijuana represented by the percentage of tetrahydrocannabinol and cannabidiol by mass. (D) A produced on date reflecting the date that the cultivator finished producing marijuana. (E) Warnings, in substantially the following form, stating, Consumption of marijuana impairs your ability to drive a car and operate machinery, Keep away from children, and Possession of marijuana is illegal under federal law. (F) Any additional requirements contained in rules adopted by the Department in accordance with this chapter. (2) Packaging shall not be designed to appeal to persons under 21 years of age RETAILER LICENSE (a) A retailer licensed under this chapter may: (1) transport, possess, and sell marijuana to the public for consumption off the registered premises; and (2) purchase marijuana from a licensed cultivator. (b)(1) In a single transaction, a retailer may provide: (A) one ounce of marijuana to a person 21 years of age or older upon verification of a valid government-issued photograph identification card that indicates the person is domiciled in Vermont; or (B) one-quarter of an ounce of marijuana to a person 21 years of age or older upon verification of a valid government-issued photograph identification card that indicates the person is domiciled outside Vermont. (2) A retailer shall not knowingly and willfully sell an amount of marijuana to a person that causes the person to exceed the possession limit. (c) A retailer may only sell useable marijuana which means the dried flowers of marijuana and does not include the seeds, stalks, leaves, and roots of the plant

24 (d)(1) Packaging shall include: (A) The name and registration number of the retailer. (B) The strain of marijuana contained. Marijuana strains shall be either pure breeds or hybrid varieties of marijuana and shall reflect properties of the plant. (C) The potency of the marijuana represented by the percentage of tetrahydrocannabinol and cannabidiol by mass. (D) A produced on date reflecting the date that the cultivator finished producing marijuana. (E) Warnings, in substantially the following form, stating, Consumption of marijuana impairs your ability to drive a car and operate machinery, Keep away from children, and Possession of marijuana is illegal under federal law. (F) Any additional requirements contained in rules adopted by the Department in accordance with this chapter. (2) Packaging shall not be designed to appeal to persons under 21 years of age. (e) A retailer shall display a safety information flyer developed or approved by the Board and supplied to the retailer free of charge. The flyer shall contain information concerning the methods for administering marijuana, the potential dangers of marijuana use, the symptoms of problematic usage, and how to receive help for marijuana abuse. (f) Internet sales and delivery of marijuana to customers are prohibited MARIJUANA TESTING LABORATORY (a) A testing laboratory licensed under this chapter may acquire, possess, analyze, test, and transport marijuana samples obtained from a licensed marijuana establishment. (b) Testing may address the following: (1) residual solvents; (2) poisons or toxins; (3) harmful chemicals; (4) dangerous molds, mildew, or filth; (5) harmful microbials, such as E.coli or salmonella; (6) pesticides; and

25 (7) tetrahydrocannabinol and cannabidiol potency. (c) A testing laboratory shall have a written procedural manual made available to employees to follow meeting the minimum standards set forth in rules detailing the performance of all methods employed by the facility used to test the analytes it reports. (d) In accordance with rules adopted pursuant to this chapter, a testing laboratory shall establish a protocol for recording the chain of custody of all marijuana samples. (e) A testing laboratory shall establish, monitor, and document the ongoing review of a quality assurance program that is sufficient to identify problems in the laboratory systems when they occur FEES. RESERVED MARIJUANA REGULATION FUND (a) The Marijuana Regulation Fund is hereby created. The Fund shall be maintained by the Department. (b) The Fund shall be composed of all application fees, license fees, renewal fees, and civil penalties collected by the Department pursuant to this chapter. (c) All balances in the Fund at the end of any fiscal year shall be carried forward and remain part of the Fund. Interest earned by the Fund shall be deposited into the Fund. (d) All monies within the Fund shall be allocated to the Department solely for the purposes of implementing, administering, and enforcing this chapter, including the costs incurred by the Department for its administrative expenses MARIJUANA TAX FUND Subchapter 4. Taxes on Marijuana (a) The Marijuana Tax Fund is hereby created. The Fund shall be administered by the Commissioner of Taxes and comprise all taxes collected by the Commissioner pursuant to this chapter. (b) By the 30th day after the end of each fiscal quarter, the monies deposited in the Fund during the prior fiscal quarter shall be allocated by the Commissioner of Finance and Management as follows: (1) 25 percent to prevention of substance abuse; (2) 25 percent to treatment of substance abuse;

26 (3) 25 percent to criminal justice efforts to combat the illegal drug trade and impaired driving; and (4) 25 percent to the General Fund for the implementation, administration, and enforcement of this act with any remaining funds allocated equally among subdivisions (1) (3) of this subsection RESERVED Subchapter 5. Marijuana Program Review Commission PURPOSE; MEMBERS (a) Creation. There is created a temporary Marijuana Program Review Commission for the purpose of facilitating efficient and lawful implementation of this act and examination of issues important to the future of marijuana regulation in Vermont. (b) Membership. The Commission shall be composed of the following members: (1) two current members of the House of Representatives, not all from the same political party, appointed by the Speaker of the House; (2) one member of the public appointed by the Speaker of the House; (3) two current members of the Senate, not all from the same political party, who shall be appointed by the Committee on Committees; (4) one member of the public appointed by the Committee on Committees; (5) two members of the public appointed by the Governor; and (6) the Attorney General or his or her designee. (c) Legislative members shall serve only while in office POWERS; DUTIES (a) The Commission shall: (1) collect information about the implementation, operation, and effect of this act from members of the public, State agencies, and private and public sector businesses and organizations; (2) communicate with other states that have legalized marijuana and monitor those states regarding their implementation of regulation, policies, and strategies that have been successful and problems that have arisen; (3) consider the issue of personal cultivation of a small number of marijuana plants and whether Vermont could permit home grow in a manner